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Outperforming following labour market data

GILTS
  • Gilts are the outperformers this morning following the slightly softer-than-expected UK labour market data released at 7:00BST with the curve bull steepening.
  • Market pricing has moved to around 18bp for the June MPC meeting (from 21bp yesterday) with the peak rate 37bp higher by September (down from 45bp yesterday). This has seen 2-year gilt yields 9.0bp lower in early trading.
  • Looking ahead, we are likely to see the syndicated launch of the new 20-year 4.00% Oct-63 gilt (ISIN: GB00BMF9LF76) today, with books likely to open at either 8:30BST or 9:00BST.
  • 2y yields down -9.0bp today at 3.725%, 5y yields down -8.5bp at 3.538%, 10y yields down -6.0bp at 3.754% and 30y yields down -3.8bp at 4.209%.
  • 2s10s up 3.0bp today at -0.1bp and 10s30s up 2.2bp at 45.5bp.

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